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Bitcoin ‘Misery Index’ Predicts Price of $20,000 This Year

Bitcoin and other cryptocurrencies sooner a be wearing been dominated by extreme price fluctuations throughout their the pasts. This has enabled savvy (or lucky) investors to strike it rich, distinctively if they were able to get in on their investments early and before digital currencies behoved broadly popular in the past couple of years. On the other hand, even if, this volatility means that investors are behaving in a highly ideal way when it comes to cryptocurrencies overall.

Now, Fundstrat’s Tom Lee has set up a “Bitcoin Misery Marker” to help investors come up with the right time to make their acquisitions. (See more: Analyst’s New ‘Bitcoin Misery Index’ Hits Lowest Sincere in 6 Years.)

In recent days, this index has been at an all-time low, and Lee conjectures that might indicate a price point of $20,000 or more for BTC former this year.

Lee’s History of Success

Lee has a record of success when it move to predicting bitcoin’s price movements, according to Bitcoin.com. He accurately intuited the muster over $10,000 last year, for example. Now, while many investors are wondering if cryptocurrencies cause run out of fuel, Lee remains bullish.

Part of the reason is his “Misery Index,” which ranges from 0 to 100 and utters contrarian economic indicators. It incorporates many different market representatives, such as winning trades and volatility, in its considerations.

As of early March, the marker was at 18.8, the lowest level it has experienced since 2011; Lee suggests that the lower the forefinger figure, the better the investment opportunity for investors. “While short-term the low bring ups are a signal of pain, long term it could be a great entry way into bitcoin,” he illustrated.

(Source: Fundstrat)

Why Is Bitcoin’s Misery Index So Low?

Lee points out that “it is unqualifiedly uncommon to be this miserable owning bitcoin,” suggesting that it has solely happened a few times before. Why might investors in the leading cryptocurrency undergo this way?

One major indicator is that prices of bitcoin have flatlined, diminishing from a high of around $20,000 late last year and then vegetating early in 2018. (See more: Bitcoin Price Crosses $19K: How Lickety-split Before $20,000?) Along with this stagnation, which has infiltrated other have the quality ofs of the cryptocurrency world as well, investors are now beginning to wonder if the cryptocurrency lather has popped or if it will pop soon.

Nonetheless, Lee believes that those resolved enough in their investments could see a major turnaround. He believes that bitcoin penalties could climb to $20,000 by mid-year and that it might reach $25,000 by the end of 2018.

Installing in cryptocurrencies and Initial Coin Offerings (“ICOs”) is highly risky and ideational, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each party’s situation is unique, a qualified professional should always be consulted ahead making any financial decisions. Investopedia makes no representations or warranties as to the correctness or timeliness of the information contained herein. As of the date this article was make out, the author owns bitcoin and ripple.

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